On January 9, 2019, the South Dakota Supreme Court upheld the denial of South Dakota’s advertising services use tax exemption to a Sioux Falls-based company (Company) that designs and maintains websites that allow individuals and car dealerships to advertise vehicles for sale. On audit, the Company was assessed use tax for purchases it made for
services
Shades of Gray: Comptroller Rules Online Training Courses Are Non-Taxable Services, Not Taxable Information Services
By Alla Raykin & Charlie Kearns on
Posted in In the News, Noteworthy Cases
The Texas Comptroller ruled that a taxpayer, which provided education and networking services for the property management industry, was not providing “information services,” but rather a non-taxable service. Taxable information services involve “furnishing general or specialized news or other current information” or “electronic data retrieval or research.” Tex. Tax Code § 151.0101(a)(10), 151.0038; Texas Rule…
New York Sales Tax Price of Being a Member of the Club
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Posted in New York, Policy and Legislation
By Alla Raykin and Jonathan Feldman
In an Advisory Opinion, the New York Department of Taxation and Finance concluded that fees paid to a social club by non-members for certain activities (tennis lessons, children’s camp, basketball court use, etc.) are not subject to tax, although membership fees that provide access to the same activities are…
Chicago Left Out in the Cold – Illinois Appeals Court Reverses Chicago’s $29.1 Million CHAT Award
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Posted in Noteworthy Cases, Policy and Legislation
By Chelsea Marmor and Open Weaver Banks
The Appellate Court of Illinois reversed the Circuit Court’s $29.1 million Chicago Hotel Accommodations Tax (CHAT) award for Chicago holding that Defendant’s online facilitation and service fees were not subject to CHAT. CHAT applies to the “gross rental or leasing charge,” which was not defined during the years…
It’s Not So Electric: Telecommunications Provider’s NYS Electricity Purchases Not Exempt Sales for Resale
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By Nicole Boutros and Scott Wright
A New York State Division of Tax Appeals administrative law judge (ALJ) determined that a telecommunications provider’s electricity purchases were not exempt from sales tax as sales for resale. In so doing, the ALJ rejected the taxpayer’s assertion that it resold electricity by incorporating it into its telecommunications services…